1Amending the act of July 20, 1979 (P.L.183, No.60), entitled "An
2act regulating the terms and conditions of certain leases
3regarding natural gas and oil," providing for multiple 
4contiguous leases, for drilling and mineral extraction in 
5subsurface land; and repealing provisions relating to 
6apportionment.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 2.1 of the act of July 20, 1979 (P.L.183,
10No.60) known as the Oil and Gas Lease Act, added July 9, 2013
11(P.L.473, No.66) is repealed:

12[Section 2.1. Apportionment.

13Where an operator has the right to develop multiple
14contiguous leases separately, the operator may develop those
15leases jointly by horizontal drilling unless expressly
16prohibited by a lease. In determining the royalty where multiple
17contiguous leases are developed, in the absence of an agreement
18by all affected royalty owners, the production shall be

1allocated to each lease in such proportion as the operator
2reasonably determines to be attributable to each lease.]

3Section 2. The act is amended by adding sections to read:

4Section 2.2. Multiple contiguous leases.

5Where an operator has the right to develop multiple
6contiguous leases separately, the operator may develop the
7leases jointly by horizontal drilling only when expressly
8permitted by the leases of properties in question. In cases
9where an operator has the right to develop multiple contiguous
10leases separately and proceeds to develop the leases jointly
11when not expressly permitted by the leases, the leases may be
12declared null and void at the lessor's discretion and may be
13renegotiated at the lessor's discretion. This section may not be
14construed to amend or alter the provisions of a lease agreement
15when the lessee has complied with the lease provisions.

16Section 2.3. Drilling and mineral extraction in subsurface
17land.

18(a) Prohibition.--Notwithstanding any provision of law, a
19gas company that does not have a valid lease with an owner of
20subsurface mineral rights, including oil or natural gas, may not
21drill into or otherwise extract minerals, including oil or
22natural gas, from subsurface land for which it does not have a
23written lease agreement.

24(b) Forced pooling.--A subsurface owner of mineral rights,
25including oil or natural gas, is not subject to any form of
26forced pooling or unitization with other subsurface properties
27when a lease to drill or otherwise extract minerals, including
28oil or natural gas, does not exist for the property.

29(c) Rule of capture.--Subsections (a) and (b) do not
30preclude a gas driller from extracting gas that has seeped onto

1an adjacent property, for which a valid lease exists, known as
2the rule of capture.

3(d) Definition.--As used in this section, the term "forced
4pooling" means the act of being forced by State law into
5participation in an oil or gas producing unit and includes
6similar terms such as:

7(1) compulsory pooling;

8(2) forced unitization;

9(3) compulsory unitization; and

10(4) terms that substantively result in the same.

11Section 3. This act shall take effect immediately.